Nike extends sponsorship with FC Barcelona

Names new head of running business

NEW YORK (MarketWatch) - Nike Inc. on Friday said it extended its sponsorship agreement with Futbol Club Barcelona for an extra five years in a deal worth about $189 million plus bonuses and royalties, pushing the relationship out through 2013.

The agreement, which applies to team uniforms, also includes a possible five-year renewal, which would further extend the relationship through 2018. More specific terms were not disclosed.

Nike said the sponsorship agreement includes a significant marketing investment over the life of the contract to position FC Barcelona worldwide and to support its "More than a club" motto and community activities.

For example, Barcelona recently entered into a five-year relationship with UNICEF to support the U.N. Millennium Development Goals and UNICEF activities.

Nike sells Barcelona jerseys in about 50 countries, and the club's jerseys are among the best-selling jerseys in the world, the company said.

The company funneled a good deal of marketing spending into the World Cup tournament earlier this year, and on its most recent earnings conference call with analysts, it said the soccer investment is already bearing fruit, with a 20% gain in its Nike soccer brand over the past year.

Separately, late Thursday, Nike
NKE, -0.30%
named Leslie Lane to head its global running business.

Lane joined Nike in 2003 as part of the company's subsidiaries' team, initially helping to lead the acquisition and integration of Converse.

Since 2004, he has been responsible for Nike's global footwear strategy, finance and costing activities.

Nike footwear generated almost $8 billion in revenue in fiscal 2006, representing about 53% of total company revenue. Before he joined Nike, Lane was a consultant with Bain and Co.

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